Opening Feature. Sojitz s Position. Sojitz Market Capitalization billion 1 ROA 3 (%)

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1 Opening Feature Succeeding by rapidly of revenue-generating Since its establishment, Sojitz has overcome changes in the external environment one by one, notably the restructuring of its finances after its management integration, the financial crisis of 2008, and the European debt crisis. As a result, Sojitz has evolved as a that perseveres and prevails. Now that it has established a strong earnings foundation and financial standing, Sojitz is entering a new phase a real growth phase in which it can steadily generate profit of 50 billion or more. In this phase, Sojitz is placing priority on building up numerous clusters of revenue-generating businesses that each earn profit of 5 billion to 10 billion. In individual regions and businesses, the Sojitz Group is demonstrating its strengths, and already has established a number of clusters of revenue-generating businesses. The Group is now focusing on creating new businesses while continuing to expand its existing businesses. Sojitz s Position ROA 3 (%) 5 4 C 1. Circle size represents market capitalization as of March 31, Calculated for the years ended March 31, 2014 to the year ending March 31, 2018 (forecast) based on each s earnings releases 3. Results for the year ended March 31, 2017 (15) (10) B E (5) D A F Sojitz Market Capitalization billion year compound annual growth rate forecast of profit for the year 2 (%) 6 Sojitz Corporation Integrated Report 2017

2 building up clusters businesses The key to achieving this growth can be summed up in one word: speed. In addition to a faster organizational structure and decision-making process, it is imperative that we increase our speed on the front lines of business, including speed in responding to customers and business partners. We are rapidly building up clusters of revenue-generating businesses. To move these efforts forward, Sojitz must prevail against the competition while keeping in mind the need to deliver value to customers and to society. By rapidly executing strategies such as investments and loans and putting the right people in the right jobs, Sojitz will outpace the competition. We believe this will create a stronger Sojitz that will run up to a real growth phase. Transformation of Sojitz s Asset Portfolio Year Ended March 31, Year Ending March 31, 2018 (Forecast) ROA (%) 2.0 ROA (%) (5) (5) (1.0) Profit for the year (Billions of yen) (1.0) Profit for the year (Billions of yen) (2.0) (2.0) Automotive Aerospace & IT Business Infrastructure & Environment Business Energy Metals & Coal Chemicals Foods & Agriculture Business Lifestyle Commodities & Materials Retail Retail & Lifestyle Business Industrial Infrastructure & Urban Development Note: The Lifestyle Commodities & Materials Division and Retail Division were reorganized into the Retail & Lifestyle Business Division and Industrial Infrastructure & Urban Development Division in April Sojitz Corporation Integrated Report

3 Fertilizer Business Accelerating Expansion by Building Strong Local Networks Overview of Fertilizer Business Managing manufacturing and sales of compound chemical fertilizer in the ASEAN region Established top market share in Thailand, Vietnam and the Philippines Manufacturing and sales capacity across Sojitz Group totals 1.8 million tons, making it one of the largest fertilizer businesses in ASEAN. Ko Tojima Managing Director, TCCC Myanmar Limited Perspective from the Front Line I have been involved in the fertilizer business in Southeast Asia, including business management at Thai Central Chemical Public Limited (TCCC) and the acquisition and management of Atlas Fertilizer Corporation in the Philippines. Currently, my mission is to expand the chemical fertilizer business in Myanmar as Managing Director of TCCC Myanmar Limited, an importer and wholesaler of compound chemical fertilizers. Although cultural and geographic differences exist between Myanmar and other ASEAN countries, building strong networks and establishing our brand that is, winning the support of farmers remain the two essential elements in business development common to all of these countries. Therefore, we directly inform farmers about the benefits of using compound chemical fertilizers in addition to strengthening sales networks by building relationships with local wholesalers and dealers. As the local farmers have yet not acquired a sufficient understanding of agricultural techniques, we are actively creating opportunities to explain the advantages of compound chemical fertilizers, including the scientific rationale. 8 Sojitz Corporation Integrated Report 2017

4 Opening Feature: Succeeding by rapidly building up clusters of revenue-generating businesses Entry into the Myanmar Market In the fertilizer business, we are expanding existing businesses in neighboring regions by leveraging the dominant brand power we have built in the ASEAN region. One new region we are targeting for expansion in Southeast Asia is Myanmar. With farmland comprising roughly 20 percent of the country s land area, and about 70 percent of the population engaging in agriculture, Myanmar is one of the major agricultural countries in Southeast Asia. However, the country is facing issues in agricultural development, and popularizing the use of high-quality fertilizers poses a significant challenge as well. Myanmar s market growth rate is the highest in Southeast Asia, with demand increasing by double-digit percentages every year. Myanmar attracts numerous competitors, but Sojitz is at an advantage, having established a branch office in Yangon more than 100 years ago. In the fertilizer business, while we thus far engaged in expanding imports and sales of compound chemical fertilizers from Thailand, in order to meet the expected growth in local demand, we plan to develop domestic compound chemical fertilizer manufacturing operations. Assigning Experienced Staff to Quickly Establish Our Presence The key to developing and growing our fertilizer business in Myanmar is to build strong local networks. Local fertilizer dealers have close relationships with farmers in their sales territories, so Sojitz is assigning staff with extensive experience cultivating and maintaining sales channels to quickly establish sales networks in cooperation with dealers. To gain insight into user needs, our personnel frequently visit sales locations to interview the fertilizer dealers. Furthermore, we engage in activities tied closely to the local region such as working directly with farmers, the end users of the product. We also consider the role of Myanmar staff crucial to expanding the business. Accordingly, we are building a business model that fits the local market through promotion and development of local staff, including management-level employees. In Myanmar, where there is still ample room for market development, we believe that speed will determine success. We will strive to turn the fertilizer business into a revenue-generating cluster by assigning highly experienced personnel to work alongside local staff, in order to quickly establish our position. Roadmap for Creating a Cluster of Revenue-Generating Businesses Expand existing businesses and develop businesses in new regions Quickly build locally-based networks and relationships in new regions Establish our brand by acquiring solid support from users Accelerate expansion by gaining insight into local needs and assigning expert staff with extensive overseas experiences There is a great deal of potential in Myanmar. While the country s primary industry is agriculture, one can sense the energy behind growth in urban centers firsthand, in the construction of modern shopping centers and other developments under construction. To establish a dominant presence in the country, we must build a cluster of revenue-generating businesses extending beyond the fertilizer business. Sojitz already has an alliance with the City Mart Group (CMG), Myanmar s leading retail group, and is working together with CMG to develop cold supply chain and food service businesses. If we can link these businesses with the fertilizer business in other words, maximize the capabilities of our local staff to build a value chain encompassing everything from fertilizers to agriculture, distribution and retail we can expect even further development. I truly hope that people will come to recognize our solid presence in Myanmar in the near future. Meeting with local partners Sojitz Corporation Integrated Report

5 Dealership Business Combining a Global Model and Overview of Dealership Business A track record of approximately 30 years in California Operates three BMW dealerships, one combined with MINI in the San Francisco Bay area of the United States, with annual sales volume of approximately 8,000 vehicles Has established a highly profitable business model with strength in preowned vehicle sales and after-sales service Acquired a dealership group consisting of BMW and MINI dealerships in Brazil in 2015 The Dealership Business as a Growth Driver In the Automotive Division, our value creation model consists of three key strategies: evolution of our assembly/wholesale business, growth of our dealership business, and development of a new business model. In particular, we are focusing on the dealership business as an important growth driver for expanding and enhancing the stable earnings foundation not only of our division, but of the Sojitz Group as a whole. Since Medium-term Management Plan 2017, we have been moving aggressively to expand this business, and have steadily captured growth opportunities by increasing operating companies through M&A. Expanding into Other Regions Based on Results in the United States The roots of Sojitz s dealership business date back to the 1987 acquisition of Weatherford Motors, Inc., which operates an authorized BMW brand franchise in California. Since then, this has performed steadily, generating profit in any Luis Garcia President, Weatherford BMW of Berkeley President, BMW Concord & MINI of Concord President, BMW of San Rafael Perspective from the Front Line I have been involved in the automotive industry for many years, with experience in the U.S., Europe and other markets. I am currently the representative of the three dealerships that are Sojitz subsidiaries, and am responsible for the growth and expansion of the U.S. dealership business. Having originally come from Portugal, I am sharing ideas and techniques cultivated in the United States with the dealership group in Brazil. The U.S. dealership business is a very attractive market. Many dealerships were privately owned, but the business landscape has been transformed through consolidation of dealerships over the last 20 years. These conditions present opportunities, and with its financial resources and overall strengths, Sojitz is uniquely positioned to grow this business by acquiring and reorganizing privately owned companies. The three cornerstones of the dealership business are products, process and people. The products that we handle are leading global 10 Sojitz Corporation Integrated Report 2017

6 Opening Feature: e Succeeding ceedin by rapidly building ing up clusters of revenue-generating enue enerer businesses Local Business Style for Growth economic climate. With eyes on this stable, profitable model, we expanded the business through the acquisition of two additional dealerships with a total of three franchises in California, in 2014 and The dealerships we acquired are widely known and well-established in their communities and have track records of almost 40 years. Having businesses such as these in our ranks will strongly bolster our presence in the United States. The current president of all three dealerships is a seasoned professional in the local industry. We are also applying the business model developed in this market in other regions. In 2015, we acquired dealerships of BMW and MINI brand vehicles in Brazil, and we plan to continue expanding into new regions. Roadmap for Creating a Cluster of Revenue-Generating Businesses Expand businesses through M&A in promising markets Invest in highly experienced management talent for successful integration Provide practical front-line experience to develop more management candidates brands: BMW and MINI. As for process, we share them across the organization, enabling us to achieve standardized processes. As for people, the assignment of managers after business integration is important. We need people who can understand the different corporate cultures and backgrounds of the companies we acquire, and then create a new strategic direction. Also, since the pool of management talent is limited, it is important to quickly develop new management candidates. I believe the shortest path to achieving that is to hire young people and give them responsibility early, so they can learn while gaining practical front-line experience. Luckily, Sojitz s management has the same idea. After we establish such a model in the United States, we will work to apply it in other regions. Weatherford Motors, Inc. (BMW dealership) Sojitz Corporation Integrated Report

7 Methanol Business Poised for Expansion in Asia and Europe Overview of Methanol Business A production base (KMI) with capacity of 700,000 tons per year, one of the largest in the industry in Indonesia volume of 1 million tons per year, including externally procured methanol, mainly in Asia, and a network of many local partners and customers Acquired a major German chemical distributor and marketing in 2017, which will expand annual trading volume to more than 2 million tons An Established Position in Asia as a Cluster of Revenue-Generating Businesses Methanol is an indispensable basic raw material that is treated as a feedstock for many kinds of materials. At the same time, it is receiving attention as a future clean energy source. The market for methanol is very promising, with demand growing every year worldwide, particularly in fast-growing Asian countries where middle-income consumers are increasing. Sojitz currently has an 85 percent stake in Indonesian methanol manufacturer PT. Kaltim Methanol Industri (KMI), and sells the methanol it produces primarily to customers in Asia. With the mobility to offer short delivery times and arrange flexible lot sizes, we have established a strong presence in the region with annual methanol trading volume of 1 million tons. By strengthening management and further expanding the robust sales network we have already built in Asia, which includes local partners, we will solidify our leading position in the market. 12 Sojitz Corporation Integrated Report 2017

8 Opening Feature: Succeeding by rapidly building up clusters of revenue-generating businesses Securing a Position as a Global Player with the Acquisition of solvadis In 2017, Sojitz acquired solvadis holding S.à.r.l., a major German chemical distributor and marketing. With roots that trace back to 1881, solvadis operates sales offices and logistics centers throughout Europe, primarily in Germany. The handles more than 1 million tons of methanol per year, and is well established in Europe, with long-term, stable relationships of trust with leading local chemical manufacturers. With this acquisition, we will expand our total annual methanol trading volume to more than 2 million tons and establish a position as a global player in the industry. We plan to rapidly create synergies to create more clusters of revenue-generating businesses. Perspective from the Front Lines Solvadis, which we recently acquired, is already recognized for its strengths in sales of methanol, sulfur, sulfuric acid and other basic chemicals. By making it a wholly owned subsidiary, we will combine the Sojitz Group s assets, insight, and expertise to establish a stable platform for earnings in the European market. Specifically, we are aiming to enter the ranks of the top five chemical distributors in Europe by growing our trading volume to a scale of 120 billion in three years. To achieve that goal with such speed, we will quickly generate synergies by conducting active exchanges of human resources, including young employees, between the two companies, and by promoting exchange training and creation of joint development projects. Expand Sojitz s European chemicals business. That is the mission I have been assigned, and I am determined to accomplish it. Akitomo Seto solvadis deutschland gmbh Roadmap for Creating a Cluster of Revenue-Generating Businesses Expand our production and marketing capabilities and establish a presence in Asia Develop globally through M&A Perspective from the Front Lines I was assigned to KMI and appointed as the leader of a project to implement enterprise systems. Improving the management infrastructure is essential for the further development and growth of KMI, which plays a central role in the methanol business. But the real key to the project s success is the cooperation of everyone involved, including project team members. In addition to applying the accounting and tax knowledge I have acquired, I maintain a close dialogue with every member of the project team to conduct management suited to local conditions, with the mobility and drive that only young people can provide. Besides supporting the growth of KMI, I also want to establish a role model for women by playing an active role as a female leader. In that way, I hope to contribute to raising the level of the Sojitz Group s human resources. Expand business scale by creating synergy between Sojitz and the companies it acquires Haruka Suzuki PT. Kaltim Methanol Industri Sojitz Corporation Integrated Report